FX Insights

While we indicated yesterday that the “strong recovery has room to extend to 0.7515/20” (see Chart of the Day update), the rapid pace of the up-move comes as a surprise as AUD hit an overnight high of 0.7522. Rapidly improving upward momentum coupled with the strong daily closing suggests that AUD has moved into a bullish phase. The immediate target is for a move to 0.7575 but extension to 0.7610/15 would not be surprising. In order to maintain the current momentum, any pull-back should not move back below 0.7455.